Trade-Ideas: Veeva Systems (VEEV) Is Today's Strong And Under The Radar Stock
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Veeva Systems as such a stock due to the following factors:
- VEEV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.6 million.
- VEEV has traded 458.08999999999997498889570124447345733642578125 options contracts today.
- VEEV is making at least a new 3-day high.
- VEEV has a PE ratio of 71.
- VEEV is mentioned 1.52 times per day on StockTwits.
- VEEV has not yet been mentioned on StockTwits today.
- VEEV is currently in the upper 20% of its 1-year range.
- VEEV is in the upper 35% of its 20-day range.
- VEEV is in the upper 45% of its 5-day range.
- VEEV is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on VEEV:
Veeva Systems Inc. provides industry cloud software and data solutions for the life sciences industry in North America, the European Union, the Asia Pacific, and internationally. VEEV has a PE ratio of 71. Currently there are 6 analysts that rate Veeva Systems a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Veeva Systems has been 1.0 million shares per day over the past 30 days. Veeva Systems has a market cap of $3.6 billion and is part of the technology sector and computer software & services industry. Shares are down 5.6% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Veeva Systems as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.8%. Since the same quarter one year prior, revenues rose by 31.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- VEEV has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.64, which clearly demonstrates the ability to cover short-term cash needs.
- After a year of stock price fluctuations, the net result is that VEEV's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Technology industry and the overall market on the basis of return on equity, VEEVA SYSTEMS INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full Veeva Systems Ratings Report.
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